CHENNAI: The Tamil Nadu government is planning to revive the fortunes of State transport corporations, which are bleeding with outstanding liabilities worth $1 billion mainly on account of retirement and salary dues, by monetising bus depots through redevelopment and by offering affordable housing bonds.
Tamil Nadu Transport Corporations, which require an investment of `2,000 crore to replace non-functional fleet, are now looking at a revival plan by creating a viable fare structure and revision model, seeking low cost funding from German agency KfW to modernise the fleet with battery-operated buses as well as reconstructing depots to accommodate commercial, retail and residential real estate.
It is learnt from sources that Tamil Nadu Infrastructure Fund Management Corporation has offered to help in bus depot redevelopment and integrating the bond with the project.
The bonds being floated by the transport department can be redeemed against affordable housing apartments under Pradhan Mantri Awas Yojana (PMAY) or commercial or retail space in the newly developed depot sites when it becomes available.
The flats will be sold outright through a Special Purpose Vehicle (SPV) which will also perform the operation and maintenance of the building so that the quality of apartments is maintained.
The redeveloped bus depots are proposed to have three separate zones. They are bus area, commercial area and the residential apartment area catering to low income and middle income group.
It is learnt that apartments in the depot, which will be in prime areas, will be given to employees or ex-employees of transport department and the rest sold on commercial basis.
Initial proposal suggests that possible buyers of the bonds will be current and former employees of transport corporations based on dues till March 31, 2018 as well as public sector banks on behalf of employees based on amounts due to them.
It is learnt that studies are being undertaken on site suitability for redevelopment of bus depots for commercial and residential purposes as well as re-alignment of roads.
Interestingly, the move by the State government comes in the wake of housing department struggling over the construction of 8.30 lakh houses under Pradhan Mantri Awas Yojana (PMAY) for urban areas as it does not have enough funds or land to build homes for those who are homeless.
As on date, the State has obtained sanction of 3.29 lakh houses from Centre under PMAY under the Credit Linked Subsidy Scheme (CLSS), Affordable Housing in Partnership scheme and Beneficiary Led Construction scheme.
Sources said the Union government provides a subsidy of only `1.5 lakh per house under the affordable housing in partnership while the cost of construction of multi-storeyed units in Chennai city limits ranges from nine lakh to `10 lakh and `eight lakh to `nine lakh in other parts of Tamil Nadu.
Revival route
State transport corporations have outstanding liabilities of $1 billion mainly on account of retirement and salary dues
It requires an investment of `2,000 crore to replace
non-functional fleet
Among the various revival plan, the State government is considering a proposal to redevelop existing bus depots and accommodate commercial, retail and residential property
Plans are also afoot to get funds under the central housing scheme to build affordable homes at bus depots
The bonds will be offered to current and former employees of transport corporations based on dues till
March 31, 2018
Struggling to meet housing target
The move by the State government comes in the wake of housing department struggling over the construction of 8.30 lakh houses under Pradhan Mantri Awas Yojana (PMAY) for urban areas as it does not have enough funds or land to build homes for those who are homeless.